Absolute Insurance Surveyors & Loss Assessors Quiz

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  • 1/50 Questions

    The principle of utmost good faith deals with the duty of the insured to voluntarily disclose accurately and fully all material facts to the risk being proposed whether requested for or not.

    • True
    • False
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About This Quiz

Risk is the eventuality of winning or losing. In business, insurance takes care of risks in the chance that they occur. The Absolute Insurance Surveyors & Loss Assessors Quiz below dives deeper into the details.

Absolute Insurance Surveyors & Loss Assessors Quiz - Quiz

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  • 2. 

    Marine insurance covers risks related to motor vehicles, Burglary and Health

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given statement is false. Marine insurance specifically covers risks related to the transportation of goods and passengers by sea or other waterways. It does not cover risks related to motor vehicles, burglary, or health.

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  • 3. 

     The insurable interest is important ingredient of an insurance contract.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Insurable interest is an important ingredient of an insurance contract because it ensures that the policyholder has a financial stake in the insured property or person. It means that the policyholder would suffer a financial loss if the insured property is damaged or the insured person experiences a loss. This requirement prevents people from taking out insurance policies on things or individuals in which they have no legitimate interest, thus discouraging fraudulent claims. Insurable interest helps maintain the principle of indemnity in insurance contracts, ensuring that the policyholder is compensated for the actual financial loss suffered.

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  • 4. 

    The principle of utmost good faith deals with the duty of the insured to voluntarily disclose accurately and fully all material facts to the risk being proposed whether requested for or not.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The principle of utmost good faith requires the insured to provide all relevant information to the insurer, even if not specifically asked for. This means that the insured must disclose all material facts about the risk being proposed, ensuring that the insurer has all the necessary information to accurately assess and underwrite the policy. Failing to disclose such information could result in the policy being voided or a claim being denied. Therefore, the statement that the principle of utmost good faith deals with the insured's duty to disclose all material facts accurately and fully is true.

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  • 5. 

     Which of the following are types of general insurance ?

    • Motor

    • Marine

    • Fire

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above" because motor, marine, and fire insurance are all examples of general insurance. General insurance covers a wide range of non-life insurance policies that protect against various risks such as damage to property, liability, and loss of assets. Motor insurance provides coverage for vehicles, marine insurance covers risks associated with shipping and transportation, and fire insurance protects against fire-related damages. Therefore, all three options mentioned in the question are types of general insurance.

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  • 6. 

    The policy is issued by the ________

    • Broker

    • Surveyor

    • Insurer

    • Insured

    Correct Answer
    A. Insurer
    Explanation
    The policy is issued by the insurer. The insurer is the party that provides insurance coverage and assumes the risk of potential losses. They are responsible for issuing the insurance policy, which outlines the terms and conditions of the coverage. The insured, on the other hand, is the individual or entity that purchases the insurance policy and is protected by the coverage provided by the insurer. The broker is an intermediary who helps facilitate the purchase of insurance, while a surveyor assesses the risk and value of the insured property.

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  • 7. 

    What is the full form of IRDA?

    • Insurance Regulatory & Development Authority

    • Indian Regulator & Development Authority

    • Insurance Regulator & Development Authority

    • Indian Regulatory & Development Authority

    Correct Answer
    A. Insurance Regulatory & Development Authority
    Explanation
    The correct answer is Insurance Regulatory & Development Authority. This is the full form of IRDA. It is a regulatory body in India that oversees and regulates the insurance industry. It is responsible for protecting the interests of policyholders and ensuring the stability and growth of the insurance sector in the country.

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  • 8. 

    Which of the following is not a peril?

    • Flood

    • Accident

    • Fire Alarm

    • Cyclone

    Correct Answer
    A. Fire Alarm
    Explanation
    A peril refers to a specific risk or danger that can cause harm or damage. In this case, flood, accident, and cyclone are all examples of perils as they represent potential risks or dangers. However, a fire alarm is not a peril itself, but rather a device or system designed to detect and alert individuals to the presence of a fire. Therefore, the correct answer is fire alarm.

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  • 9. 

    ITC A covers which of the following perils.

    • Fire

    • Lightening

    • Rain water Damage

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    ITC A covers all of the mentioned perils, including fire, lightning, and rain water damage. This means that if any of these perils occur, ITC A will provide coverage.

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  • 10. 

    Insurance is based on the law of large numbers

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Insurance is based on the law of large numbers because it relies on the principle that as the number of insured individuals increases, the more accurate the predictions of risk and loss become. The law of large numbers states that the average of the results obtained from a large number of trials will tend to be close to the expected value. In the context of insurance, this means that by pooling a large number of policyholders together, the insurer can more accurately predict the likelihood of claims and determine appropriate premiums to cover those claims.

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  • 11. 

    ITC B cover is also known as a basic cover.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    ITC B cover is indeed known as a basic cover.

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  • 12. 

     A _________ is an individual/corporation whose job is to assess the loss.

    • Broker

    • Surveyor

    • Investigator

    • Agent

    Correct Answer
    A. Surveyor
    Explanation
    A surveyor is an individual or corporation whose job is to assess the loss. They are responsible for evaluating the extent of damage or loss in various situations such as property damage, insurance claims, or construction projects. Surveyors use their expertise and knowledge to inspect and analyze the situation, gather relevant information, and provide accurate assessments of the loss. They play a crucial role in determining the value of the loss and assisting in the resolution or settlement process.

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  • 13. 

    The principle of subrogation and contribution are one and the same.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The principle of subrogation and contribution are not the same. Subrogation refers to the right of an insurer to step into the shoes of the insured and pursue a claim against a third party responsible for the loss. On the other hand, contribution is the right of multiple insurers who share the same risk to contribute proportionately towards the settlement of a claim. These principles have different purposes and applications in insurance.

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  • 14. 

    The principle of indemnity says that the insured shall be paid a financial compensation sufficient to place him in the financial position after the loss as he enjoyed before the loss occurred. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The principle of indemnity ensures that the insured is adequately compensated financially after a loss, allowing them to regain the same financial position they were in before the loss occurred. This principle aims to prevent the insured from suffering any financial hardship as a result of the loss. Therefore, the statement is true.

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  • 15. 

     A positive duty to voluntarily disclose, accurately and fully all facts material to the risk being proposed whether requested for or not, is called as ________________

    • Indemnity

    • Insurable Interest

    • Material Fact

    • Utmost Good Faith

    Correct Answer
    A. Utmost Good Faith
    Explanation
    Utmost Good Faith refers to the duty of the insured to provide all relevant information regarding the risk being proposed, whether or not it is requested by the insurer. This duty requires the insured to disclose all material facts accurately and fully, ensuring complete transparency between the parties involved. By adhering to the principle of Utmost Good Faith, both the insured and the insurer can make informed decisions and accurately assess the risk involved in the insurance contract.

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  • 16. 

    The proposer pays a consideration to the insurance company for bearing the risk on his behalf. What is the consideration known as? 

    • Enrollment Fee

    • Premium

    • Sum Insured

    • Installment

    Correct Answer
    A. Premium
    Explanation
    The consideration paid by the proposer to the insurance company for bearing the risk on his behalf is known as the premium. The premium is the amount of money that the insured person pays regularly to the insurance company in exchange for the coverage provided by the insurance policy. It is a key component of the insurance contract and is determined based on factors such as the type of insurance, the level of coverage, the risk profile of the insured, and other relevant factors.

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  • 17. 

    ABC Industries Ltd has sold a consignment of granules to M/s XYZ Plasts Ltd. The material was dispatched from Mumbai to be delivered to Chennai with the incoterms of Ex-Works on the invoice. While leaving the factory premises, the consignment carrying vehicle collided with another vehicle and the material of granules was damaged due to the same. M/s XYZ Plasts Ltd has insured the cargo with under a marine policy with a ITC-A coverage. The buyer has claimed the loss with their insurers. Will the loss be payable to the buyer. 

    • Yes

    • No

    Correct Answer
    A. Yes
    Explanation
    The loss will be payable to the buyer because the buyer had insured the cargo with a marine policy that provides coverage for such incidents. The fact that the material was damaged due to a collision during transportation does not negate the buyer's right to claim the loss from their insurers.

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  • 18. 

     Anything tangible or intangible that is capable of being owned or controlled is called as __________

    • An Event

    • An Asset

    • A value

    • None of the above

    Correct Answer
    A. An Asset
    Explanation
    An asset refers to anything tangible or intangible that can be owned or controlled. It can be a physical object such as property or equipment, or it can be an intangible item such as intellectual property or a contractual right. Assets hold value and can be utilized to generate future benefits or provide economic value to the owner or controller.

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  • 19. 

    Which of the following is not a principle of insurance

    • Indemnity

    • Material Facts

    • Utmost Good Faith

    • Contribution

    Correct Answer
    A. Material Facts
    Explanation
    Material Facts is not a principle of insurance. The principles of insurance include indemnity, utmost good faith, and contribution. Indemnity refers to the principle that the insured should be restored to the same financial position they were in before the loss occurred. Utmost good faith requires both the insurer and insured to disclose all relevant information honestly and accurately. Contribution is the principle that allows multiple insurers to share the cost of a claim proportionally. Material facts, on the other hand, refer to the information that is important and relevant to the insurance contract, but it is not a principle itself.

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  • 20. 

    The principle of indemnity ensures that the insurance company makes a reasonable profit from the policy offered.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The principle of indemnity does not ensure that the insurance company makes a reasonable profit from the policy offered. Instead, it ensures that the insured is compensated for the actual financial loss suffered, up to the limit of the policy. The principle of indemnity aims to restore the insured to the same financial position they were in before the loss occurred, without allowing for any profit. Therefore, the statement is false.

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  • 21. 

     Which are the basic documents required at the time of survey ? 

    • Invoice and LR

    • Packing List

    • Claim Bill

    • None of the above

    Correct Answer
    A. Invoice and LR
    Explanation
    At the time of survey, the basic documents required are the invoice and LR (Loading Receipt). These documents provide important information regarding the goods being transported, such as the description, quantity, and value. The invoice serves as a proof of purchase or sale, while the LR is a document that acknowledges the receipt of goods for transportation. These documents are essential for verifying the accuracy of the goods being surveyed and ensuring that the correct items are accounted for.

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  • 22. 

    Which of the following is not an intermediary

    • Agent

    • Broker

    • Medical Examiner

    • Bank

    Correct Answer
    A. Medical Examiner
    Explanation
    A medical examiner is not considered an intermediary because intermediaries typically act as middlemen or facilitators in a transaction or process. They help connect two or more parties and assist in the exchange of goods, services, or information. Agents and brokers, for example, act as intermediaries in various industries, such as real estate or insurance, by representing clients and facilitating transactions on their behalf. However, a medical examiner is a professional who performs autopsies and investigates the cause of death, which does not involve intermediation between parties.

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  • 23. 

    The surveyor does not have a role to play in life insurance business.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because a surveyor is not typically involved in the life insurance business. A surveyor is someone who assesses the value, condition, or quality of a property or item. In the context of insurance, a surveyor may be involved in assessing the value of a property for property insurance purposes. However, when it comes to life insurance, the assessment is typically based on the individual's health and other factors, rather than the value of a property. Therefore, a surveyor does not have a direct role in the life insurance business.

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  • 24. 

    Which of the following is not a material facts in a general insurance ?

    • Description of a vehicle

    • Nature of goods

    • Family history of hereditary illness

    • Construction and usage of building

    Correct Answer
    A. Family history of hereditary illness
    Explanation
    In general insurance, material facts are the information that can influence the insurer's decision in providing coverage or determining the premium. The description of a vehicle, nature of goods, and construction and usage of a building are all relevant to general insurance as they affect the risk and potential claims. However, family history of hereditary illness is not directly related to general insurance as it does not impact the insurable risk. Therefore, it is not considered a material fact in this context.

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  • 25. 

     An individual who is engaged in sourcing insurance business for a particular company. 

    • Broker

    • Agent

    • Surveyor

    • Insured

    Correct Answer
    A. Agent
    Explanation
    An agent is a person who is authorized to act on behalf of an insurance company and is responsible for sourcing insurance business. They have the authority to negotiate and sell insurance policies to individuals or businesses. Unlike brokers who work independently and represent multiple insurance companies, agents exclusively represent a specific company. Therefore, an agent is the correct answer in this context.

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  • 26. 

     What is also known as a sale agreement ?

    • Invoice

    • LR

    • Policy copy

    • Packing list

    Correct Answer
    A. Invoice
    Explanation
    An invoice is also known as a sale agreement because it is a document that outlines the details of a transaction between a buyer and a seller. It includes information such as the products or services purchased, the quantity, the price, and the terms of payment. By providing this information, the invoice serves as a legal agreement between the two parties, confirming the sale and the obligations of both the buyer and the seller.

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  • 27. 

    Which of the below are the entities in the insurance industry

    • Corporate Agents

    • Medical Examiners

    • Surveyors

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The entities in the insurance industry include corporate agents, medical examiners, and surveyors. Corporate agents are individuals or organizations that sell insurance policies on behalf of insurance companies. Medical examiners are professionals who assess the health and medical conditions of individuals applying for insurance coverage. Surveyors are experts who assess and evaluate the risks associated with insurable properties. Therefore, all of the options listed are entities that play a role in the insurance industry.

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  • 28. 

    Sanjay has given a loan of Rs.15,000 to Mohit for 5 years. At the end of 4 years, the outstanding balance of the loan due is Rs.2,500. According to the principle of insurable interest, how much is the insurable interest of Sanjay on the life of Mohit ?

    • The full loan amount of Rs.15,000

    • The amount already paid Rs.12,500

    • The outstanding loan balance of Rs.2,500

    • None. Sanjay cannot take insurance on Mohit's life as the two don't have any insurable interest

    Correct Answer
    A. The outstanding loan balance of Rs.2,500
    Explanation
    Sanjay's insurable interest on the life of Mohit would be the outstanding loan balance of Rs.2,500. This is because insurable interest refers to the financial interest that a person has in the life of another person. In this case, Sanjay has a financial interest in Mohit's life because if Mohit were to pass away, Sanjay would still be owed the remaining balance of the loan. Therefore, the insurable interest would be the amount that is still owed, which is Rs.2,500.

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  • 29. 

    If the policyholder files a claim with one company, that company is entitled to collect a proportional amount of money from the other involved insurance companies.The above describes which principle ?

    • Principle of Indemnity

    • Principle of Subrogation

    • Principle of Contribution

    • Principle of Insurable Interest

    Correct Answer
    A. Principle of Contribution
    Explanation
    The principle of contribution states that if a policyholder files a claim with one insurance company, that company is entitled to collect a proportional amount of money from the other involved insurance companies. This principle ensures that the policyholder does not receive more than the actual value of the loss or damage, and prevents the policyholder from profiting from multiple insurance policies for the same loss.

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  • 30. 

    Which of the following is not a term of sale ?

    • JIR

    • EXW

    • CIF

    • All of the above

    Correct Answer
    A. JIR
  • 31. 

    A survey report is required by the insurance company for losses above ________

    • Rs.10,000

    • Rs.25,000

    • Rs.20,000

    • Rs.26,000

    Correct Answer
    A. Rs.20,000
    Explanation
    A survey report is required by the insurance company for losses above Rs.20,000. This means that if the value of the loss is below Rs.20,000, the insurance company may not require a survey report. However, if the loss exceeds Rs.20,000, the insurance company will need a survey report to assess the extent of the damage and determine the appropriate compensation.

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  • 32. 

    In which year was the IRDA was set up?

    • 1998

    • 1999

    • 2000

    • 2001

    Correct Answer
    A. 1999
    Explanation
    The Insurance Regulatory and Development Authority (IRDA) was set up in the year 1999. This regulatory body was established to promote and regulate the insurance industry in India, ensuring the protection of policyholders' interests and the smooth functioning of insurance companies.

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  • 33. 

    The principle of subrogation specifies that if a policyholder files a claim with one company, that company is entitled to collect a proportional amount of money from the other involved insurance company.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The principle of subrogation specifies that if a policyholder files a claim with one company, that company is entitled to collect a proportional amount of money from the other involved insurance company. However, this statement is false. The principle of subrogation actually allows the insurance company that pays a claim to "step into the shoes" of the policyholder and pursue legal action against the responsible party to recover the amount paid. It does not entitle the insurance company to collect money from another insurance company.

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  • 34. 

    What does ITC stand for ?

    • Inland Transit Clause

    • International Transit Clause

    • Inland Transit Cover

    • International Transit Cover

    Correct Answer
    A. Inland Transit Clause
    Explanation
    The correct answer is "Inland Transit Clause." This term refers to a clause in an insurance policy that provides coverage for goods and merchandise while in transit within the same country. It specifically applies to situations where the goods are being transported from one location to another within the same country.

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  • 35. 

    Which of the following is a restricted cover ? 

    • ITC A

    • ITC C

    • ITC B

    • All of the above

    Correct Answer
    A. ITC C
    Explanation
    The correct answer is ITC C. A restricted cover refers to a subset of a set that covers all elements of the original set, but with certain restrictions or conditions. In this case, ITC C is the only option that satisfies the condition of being a restricted cover.

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  • 36. 

    Which of the following is not a document that is required for finalizing a FSR ?

    • Invoice

    • Claim Bill

    • Policy Copy

    • None of the above

    Correct Answer
    A. None of the above
    Explanation
    The question asks for a document that is not required for finalizing a FSR (Final Settlement Report). The options provided are Invoice, Claim Bill, Policy Copy, and None of the above. The correct answer is "None of the above" because all three documents (Invoice, Claim Bill, and Policy Copy) are typically required for finalizing a FSR.

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  • 37. 

    As per the Incoterms 2010, how many terms of sale are in use ?

    • 11

    • 14

    • 09

    • 10

    Correct Answer
    A. 11
    Explanation
    As per the Incoterms 2010, there are 11 terms of sale in use. These terms define the responsibilities and obligations of buyers and sellers in international trade, including the delivery of goods, transfer of risk, and allocation of costs. Each term represents a different arrangement between the parties involved, such as EXW (Ex Works), FOB (Free on Board), and CIF (Cost, Insurance, and Freight). These terms help ensure clarity and consistency in international trade transactions.

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  • 38. 

    Which of the widest cover provided by the insurance company ?

    • ITC A

    • ITC C

    • ITC B

    • All of the above

    Correct Answer
    A. ITC A
    Explanation
    ITC A provides the widest cover among the insurance companies mentioned.

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  • 39. 

    Certificate of Loss is issued by _________

    • Broker

    • Carrier

    • Insurer

    • Insured

    Correct Answer
    A. Carrier
    Explanation
    A Certificate of Loss is issued by the carrier. The carrier is the entity responsible for transporting goods or individuals from one place to another. In the context of insurance, the carrier refers to the insurance company that provides coverage for the insured. Therefore, it is the carrier who issues the Certificate of Loss, which is a document that confirms the occurrence of a loss or damage and may be required for insurance claims.

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  • 40. 

    Insurance does not protect the asset.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Insurance is a risk management tool that provides financial protection against potential losses or damages. It does not physically protect the asset itself, but rather provides compensation or coverage for any losses or damages that may occur to the asset. Therefore, it is correct to say that insurance does not directly protect the asset.

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  • 41. 

    An individual who is wholly engaged is sourcing insurance business for various companies is called _______

    • Agent

    • Investigator

    • Broker

    • Surveyor

    Correct Answer
    A. Broker
    Explanation
    An individual who is wholly engaged in sourcing insurance business for various companies is called a broker. A broker acts as an intermediary between the insurance companies and the clients, helping clients find the most suitable insurance coverage and policies. They are knowledgeable about different insurance products and can provide expert advice to clients. Unlike agents who represent a specific insurance company, brokers work independently and can offer clients a wider range of options from multiple insurance providers. Thus, the term "broker" accurately describes an individual engaged in sourcing insurance business for various companies.

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  • 42. 

    The licence of a surveyor is valid for ______ years.

    • 3

    • 5

    • 7

    • 1

    Correct Answer
    A. 5
    Explanation
    The license of a surveyor is valid for 5 years. This means that surveyors are required to renew their license every 5 years in order to continue practicing. The 5-year validity period ensures that surveyors stay updated with the latest standards and regulations in the field. It also allows for periodic assessments of their skills and knowledge to maintain the quality and accuracy of surveying practices.

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  • 43. 

    I) Fireii) Lightningiii) Collisioniv) OverturningAll of the above perils are covered under which of the below clauses.  

    • ITC A and ITC B

    • ITC B and ITC C

    • ITC A and ITC C

    • All of the above

    Correct Answer
    A. ITC A and ITC B
    Explanation
    All of the above perils, including fire, lightning, collision, and overturning, are covered under ITC A and ITC B clauses.

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  • 44. 

    ABC Industries Ltd has sold a consignment of granules to M/s XYZ Plasts Ltd. The material was dispatched from Mumbai to be delivered to Chennai with the incoterms of CIF Chennai on the invoice. While in transit, the consignment carrying vehicle met with an accident and the material of granules was damaged. M/s XYZ Plasts Ltd has insured the cargo with under a marine policy with a ITC-A coverage. The buyer has claimed the loss with their insurers. Will the loss be payable to the buyer. 

    • Yes

    • No

    Correct Answer
    A. No
    Explanation
    No, the loss will not be payable to the buyer. The incoterms of CIF Chennai indicate that the seller is responsible for the goods until they are delivered to the port of destination. Since the accident occurred while the goods were in transit, it is the seller's responsibility to bear the loss. Additionally, the buyer has insured the cargo under a marine policy, which means they have already transferred the risk to the insurer. Therefore, the buyer should be able to claim the loss from their insurers, rather than the seller.

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  • 45. 

    The contractual term for the premium is known as___________

    • Contribution

    • Consideration

    • Commitment

    • Consolidation

    Correct Answer
    A. Consideration
    Explanation
    Consideration refers to the payment made by one party to another in exchange for a promise or performance under a contract. It is an essential element of a valid contract and is often in the form of money, goods, or services. In the context of insurance, the premium paid by the insured is the consideration for the insurer's promise to provide coverage and pay for covered losses. Therefore, the contractual term for the premium is known as consideration.

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  • 46. 

    Which of the following is not an ITC C peril ?

    • Fire

    • Lightening

    • Collision

    • All of the above

    Correct Answer
    A. Collision
    Explanation
    Collision is not an ITC C peril because ITC C perils refer to specific types of risks covered by an insurance policy. Fire and lightening are examples of ITC C perils, as they are events that can cause damage or loss. Collision, on the other hand, typically falls under a different category of insurance coverage, such as auto insurance, where it refers to accidents involving vehicles. Therefore, collision is not considered an ITC C peril.

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  • 47. 

    What is the mother of all documents ?

    • Invoice

    • LR

    • Claim Bill

    • Joint Inspection Report

    Correct Answer
    A. LR
  • 48. 

    The purpose of Insurance is to ___________

    • Bring people who are exposed to similar risks together

    • Pay claims

    • Collect premium

    • All of the above

    Correct Answer
    A. Bring people who are exposed to similar risks together
    Explanation
    Insurance serves the purpose of bringing together individuals who face similar risks. By pooling their resources through the payment of premiums, insurance companies are able to provide financial protection to policyholders in the event of a covered loss or risk. This collective approach allows for the spreading of risk and ensures that policyholders are not solely responsible for bearing the full burden of potential losses. Additionally, insurance companies are responsible for paying valid claims, providing the necessary financial support when policyholders experience covered losses.

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  • 49. 

    How many principles of insurance pertain to the general insurance sector ? 

    • 4

    • 6

    • 5

    • 7

    Correct Answer
    A. 5
    Explanation
    The correct answer is 5. The principles of insurance that pertain to the general insurance sector include insurable interest, utmost good faith, indemnity, subrogation, and contribution. These principles are fundamental in ensuring the fairness and effectiveness of insurance contracts in the general insurance sector.

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  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 15, 2014
    Quiz Created by
    Absolutelearning
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